1. Field of the Invention
The present invention relates to a computer implemented system for encumbered property sale applications, and more particularly to a system for management and processing of such applications.
2. Related Art
Property owners are required to pay properly taxes on an annual basis to their local tax collector. When owners neglect to pay taxes due within a predetermined amount of time, a tax certificate is sold by the local tax collector to an investor. A tax certificate, after lapse of a predetermined amount of time, can provide the investor with a return in the form of interest. In general, the investor may hold the tax certificate for a predetermined period of time, usually between 2 and 7 years. At any time between the second and seventh year, the investor may request a tax deed sale of the parcel to achieve his return.
It is generally known in the art that for an investor to request a tax deed sale to recover the interest, an investor must seek and apply for a fax deed sale on a valid tax certificate. First, the investor has to manually examine the tax certificates in his possession and determine which ones are eligible to apply for and order a tax deed sale. Second, an investor has to determine the amount earned interest and calculate the total amount of monies he is due. This typically requires the investor to contact the tax collector's office to obtain current payoff and interest calculations. Finally, an investor would then have to deliver to the local fax collector's office, in person or by mail, an application for a tax deed sale, including the list of the eligible tax certificates, as well as several other forms, and necessary identification and notarization of signatures.
Once the focal tax collector receives the application from the investor, the local tax collector must review and determine if any of the submitted tax certificates are truly eligible for a tax deed sale. Additionally, the tax collector also has to calculate the interest, to verify the investor's claim. The time period between the investor receiving the calculation and the application fee being received by the county complicates this process. If certificates redeem during this time period, monies may need to be refunded. Furthermore, the tax collector must find any other tax certificates outstanding on the parcel associated with the investor's tax certificate(s). Should the tax collector find additional outstanding certificates on the parcel, the tax collector also has to determine whether the investor owns these additional tax certificates. If another investor owns the tax certificates, the tax collector also has to calculate all monies and interest due the other investor. Once all additional tax certificate totals are calculated, the tax collector has to calculate the preliminary fees and notify the investor of a total amount of fees that must be paid for the application to proceed. Some counties require separate applications for homesteaded properties, and can have different filing requirements for such properties.
The investor generally obtains certified funds and delivers them to the tax collector, usually by mail or hand delivery. However, if sufficient delay occurs between the initial application and the receipt of fees by the tax collector, then any interest on any tax certificates associated with a parcel will have to be recalculated and additionally fees from the investor are necessary. Furthermore, upon receipt of the funds, the tax collector must still go back and verify that the tax debt is still outstanding. If the owner of the parcel associated with a tax certificate pays the outstanding tax bill during this time, then the tax collector has to reject the investor's application and refund the investor's fees. An additional difficulty of the process is where other investors have submitted applications on the same parcel during this time, then the county must make a determination of which application was filed first and issue refunds accordingly.
Generally, when a tax collector has accepted the funds from an investor, they request title commitments from a title company. Typically, the county sends a “Title Request Form” to the title company. The title search and commitment process can generally take between one and eighteen months, if during this time an investor desired to find out the status of the title search and commitment process, the investor would have to contact the local tax collector, who in turn would have to contact the title company to request an update. Once the title company has completed the search, the title company generally sends a tax collector a tax deed search form, including all the lien holders of the parcel.
Upon receipt of the search results from the title company, the tax collector can then order the sale. However, a property owner may still redeem his property by paying all back taxes and costs up until the tax deed is signed by the local authority approving the sale. Afterwards the deed is final. Costs, fees, and any valid liens are paid out of the monies received from the successful bidder. The investor is then reimbursed his monies plus interest earned.
It is generally known in the art that the existing system complicates the application process, resulting in extended time periods between the initial filing of en application and the subsequent sale. This puts the investor at increased risk by allowing the parcel owner additional time to redeem his property by paying the outstanding tax debt. Furthermore, the existing system is inefficient end has not used technology to gain productivity or decrease the complexity of the process. investors do not have the ability to check the real time status of any tax deed sale application. Additionally, the contemporary process burdens the fax payer and/or property owner because interest is accruing while the application is being processed.
Therefore, there is a need for a fax deed application system that minimizes investor risk. There is a further need for such a system that reduces time periods between the various tasks required to issue a tax deed. There is yet a further need for such a system that minimizes the amount of calculations required on the part of investors and tax collectors. There is also a need for such a system that updates parcel data, investor information, and/or tax deed application status. There is additionally a need for such a system that facilitates fee payments, updating of tax collector information, and/or access to parcel information.